The Laborers’ and Retirement Board Employees’ Annuity and Benefit Fund of Chicago (“LABF”) was established in 1935 by the Illinois legislature under Article 11 of the Illinois Pension code [40 ILCS 5/11-101 et seq.] to provide retirement and disability benefits to its members and their beneficiaries. LABF’s Board of Trustees (“Board”) administers benefits and manages Fund assets.
The LABF covers individuals who are employed by the City of Chicago in positions classified as “laborer service,” certain Board of Education employees under the laborer service classification and individuals employed by the Laborers’, Policemen’s and Firemen’s Annuity and Benefit Funds. Employees immediately become members of the LABF when they are hired. State law requires you to contribute to LABF and once you are a member of LABF, you always remain a member of LABF even if your job title changes.
LABF Defined Benefit Plan
The Plan is a qualified defined benefit plan, under Section 401 (a) of the Internal Revenue Code and operates on a calendar year ending December 31st of each year. Since January 1, 1982, contributions made to LABF that are deducted from your salary are not subject to taxation. A member is eligible to receive a retirement annuity based on the member’s age, years of service and final average salary as a lifetime benefit.
Your contributions may not be:
Attached or garnished by a creditor (except for court ordered child support or to satisfy an IRS tax levy)
LABF Retirement Benefits and Social Security
Under the Windfall Elimination Provision, your Social Security retirement or disability benefit is figured using a modified formula when you are also entitled to a pension from a job where you did not pay Social Security tax. As a result, you will receive a lower Social Security benefit than if you were not entitled to a pension from LABF. This provision reduces, but does not totally eliminate your Social Security benefits. For additional information, please refer to the Social Security publication, “Windfall Elimination Provision.” You can also visit Social Security Administration’s website.
Pension Reform Legislation
On April 14, 2010, the Illinois governor signed Senate Bill 1946 (Public Act 96-0889). The legislation created a “Second Tier” of pension benefits applicable to public employees hired on or after January 1, 2011. The law does not change benefits for members hired on or prior to December 31, 2010 and current annuitants.
On July 6, 2017, the Illinois governor signed Senate Bill 42 (Public Act 100-0023). The legislation created a “Third Tier” of pension benefits applicable to public employees who first participated in LABF or a designated (see listing below) Illinois reciprocal retirement system1 on or after July 6, 2017.
The Retirement Board trustees employ an actuarially trained office staff. The staff is supervised by the Fund’s Executive Director who oversees all administrative functions. Our staff is eager to assist you.
 Designated Reciprocal Fund shall refer to any of the following pension funds or retirement systems: (1) Laborers’ and Retirement Board Employees’ Annuity and Benefit Fund of Chicago, (2) Municipal Employees’, Officers’ and Officials’ Annuity and Benefit Fund of Chicago, (3) Illinois Municipal Retirement Fund, (4) County Employees’ and Officers’ Annuity and Benefit Fund, (5) Forest Preserve District Employees’ Annuity and Benefit Fund, (6) Park Employees’ and Retirement Board Employees’ Annuity and Benefit Fund, (7) Metropolitan Water Reclamation District Retirement Fund, (8) State Employees’ Retirement System of Illinois, (9) State Universities Retirement System, (10) Teachers Retirement System of the State of Illinois, and (11) Public School Teachers’ Pension and Retirement Fund of Chicago